The post Bitcoin ‘Well-Positioned’ To Break $100,000 Barrier Despite Short-Term Volatility: Report appeared on BitcoinEthereumNews.com.

According to a recent report by Bitfinex, Bitcoin (BTC) breaking through the psychologically significant $100,000 barrier will largely depend on the actions of two key holder cohorts – long-term holders (LTH) engaging in profit-taking and short-term holders (STH) driving demand. Short-Term Holder Demand Critical To Propel Bitcoin To $100,000 Bitcoin’s price surged an impressive 37.3% in November, closing the month at a record-breaking $96,506. However, for the flagship cryptocurrency to cross the $100,000 mark, demand from STHs must align with the supply provided by LTHs. Historically, December has been one of the most volatile months for Bitcoin. However, during halving years, the month typically delivers strong performance, with average returns of 38.86%. Since the most recent halving occurred in April 2024, analysts anticipate that December could be favorable for BTC holders. Source: Bitfinex The latest edition of the ‘Bitfinex Alpha’ report highlights several factors likely to propel Bitcoin beyond $100,000. The report notes that while short-term volatility may persist, the current bullish momentum in the cryptocurrency market suggests further gains are probable. The report also points out that short-term price pullbacks – like the one witnessed last week when BTC briefly dropped to $90,911 – are often driven by ETF outflows and LTH profit-taking. Specifically, the report states: Last week, ETFs registered net outflows of $135.1 million, with the bulk of these taking place during the first two trading days. LTHs have distributed a significant 508,990 BTC since September, increasing the supply entering the market. While the 508,990 BTC distributed by LTHs since September is notable, it remains lower than the 934,000 BTC distributed before the March 2024 highs. Nonetheless, consistent demand from ETFs and retail buyers will prevent further price pullbacks. Source: Glassnode As can be seen in the above chart, the STH supply is close to its cycle…

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Filed under: News - @ December 4, 2024 9:26 am